Blue State Defeats Oil Producers
Here’s what you should know…
On Tuesday, Democrat Governor Gavin Newsom of California declared a triumph over oil corporations by enacting legislation that restricts their profits and penalizes them for engaging in price gouging. However, there is minimal proof that they are actually participating in such actions.
According to Breitbart, during last summer’s nationwide price surges, it became apparent that California’s gas prices are typically the highest in the country. As previously reported by the New York Times, this is due to state taxes and climate change regulations. One CEO of an oil company defended allegations of price gouging by pointing out that California has strict regulations on refining, which hinder supply.
Despite facing legal obstacles, Governor Newsom sought a scapegoat and found the oil companies to be an effortless target in a state where left-leaning voters elected Democrats to all statewide positions. However, his initial legislative attempts encountered legal challenges.
According to CalMatters.org, the approved version of the bill is a diluted version of the initial proposal. Nevertheless, it may eventually result in increased gas prices if oil companies opt to cease operations in California.
Governor Newsom has already prohibited the sale of most gas-powered cars in California by 2035 and is striving to implement similar restrictions for diesel trucks, regardless of the impact on shipping or the inadequate capacity of the state’s power grid, which has experienced power outages in two of the past three summers. If oil companies choose to depart from the state, supply will become even more limited, resulting in a legislative “victory” turning into a loss for Californian drivers.
Governor Newsom’s actions indicate a possible interest in running for president. He boasted about overcoming “30-plus lobbyists” to push his bill through the California state legislature, where Democrats hold a supermajority in both chambers.
